Vale Sends Teams to Anglo to Study Acquisition Bid, Estado Says

June 19, 2008

June 20th (Bloomberg) – Cia. Vale do Rio Doce sent teams to assess Anglo American Plc units in preparation for a possible acquisition offer that would make it the world’s biggest mining company, O Estado de S. Paulo reported.

Technicians from Vale, the world’s biggest iron-ore producer, visited Anglo operations in Brazil, South Africa, Colombia and Australia, Estado said, citing people connected to Vale. The Brazilian company is also considering bids for Freeport-McMoRan Copper & Gold Inc. or Alcoa Inc. as it seeks to overtake BHP Billiton Ltd. as the top mining company, the newspaper said.

Vale is negotiating financing with 10 banks, Estado said. They include HSBC Holdings Plc, Banco Santander SA, BNP Paribas SA, Royal Bank of Scotland Group Plc, Citigroup Inc. and Credit Suisse Group AG, which were among eight banks that had pledged $50 billion for Vale’s failed bid for Xstrata Plc earlier this year.

A Vale official in Rio de Janeiro declined to confirm to Bloomberg News that the company had sent staff to evaluate the assets of Anglo or any other company.

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